Birmingham City have confirmed they are facing the prospect of selling England
international goalkeeper Jack Butland to avoid administration.

Butland will be offloaded to raise funds if acting Birmingham chairman Peter Pannu fails to find a buyer for the Championship club next month.

Gianni Paladini's proposed £30 million takeover has not advanced, despite talks with Pannu nearly two weeks ago, and negotiations with two consortiums in Hong Kong have also failed to progress.

Birmingham owner Carson Yeung's trial to answer money laundering charges has been delayed until the spring but his assets have been frozen and the club's finances have been described as "chronic" by sources.

Birmingham will have to generate money in the New Year to effectively keep the club going and selling Butland, the goalkeeper, would ensure a swift solution. The 19 year-old is rated at around £10 million and Birmingham have already rejected a £6 million offer from Southampton.

Manchester City, Arsenal, Tottenham Hotspur, Everton and West Ham United have all scouted Butland this season and Birmingham are open to offers if the takeover situation continues to drag on. Nathan Redmond, the England U19 international winger, could be another target for Premier League clubs.

Related Articles

And Pannu has revealed the full scale of their financial problems by admitting Butland will have to be sacrificed to prevent the situation from becoming even more grave.

He said: "I can’t say that we are in a very wonderful situation, I would be lying if I said that. This is a very tricky question [player sales].

"What I can say is that - and I might be blasted for this by the fans - but no one is for sale and everyone is available. As in any club. Give me a £15 million offer for Jack Butland, can I say no?

"I have rejected £6 million from Southampton [in the summer] but I rejected it when our finances were OK. As the time is ticking, I might not be able to reject it if I get something similar.

"If I allow this club to go into administration, I think I will never [be able to] step foot in Birmingham city. Never. And I am not going to allow that to happen.

"If I do annoy the fans and I do dispose of players, it will be to keep the club afloat."

Nikola Zigic's substantial salary is also proving a major drain on Birmingham's finances. The Serbia international earns a staggering £50,000 a week after Birmingham failed to insert a clause into his contract that ensured his pay would be reduced in the event of relegation.

Zigic saw a move to Real Mallorca collapse in the summer but Pannu has admitted the forward's situation may have to also be reviewed next month.

He told the Birmingham Mail: "Ziggy obviously is earning a lot of money here. He’s a very good guy, a gentleman, a gentle giant and I have got lots of time for him.

"But I can’t shy away from the fact that we are paying a lot of money which I’m sure we can’t [afford to]. He realises that.

"We might have to consider his position in January. There are other players who are earning a lot of money, at least four, five players I’d hope weren’t earning that much.

"It might be the case that if opportunities arise I will have to look at that."